What to Do If You're a Victim of Tax Fraud?Mar 7, 2019 | 0 Votes by Justo - rate Tax fraud is increasingly rampant especially during the tax season and if you happen to fall victim to one of these scams, here's what you can do to get yourself out of the mess!
Tax fraud is becoming more and more frequent nowadays, and you have to be aware of the hazards which this implies. When someone files a false tax return in your name they are looking to collect on your tax refund. If this ever happens, you will have to report it to the IRS immediately because you could be dealing with identity theft.
You will get a notice
Usually, most people don’t realize they are in the middle of a fraudulent tax return process until the second return is filed. Meaning that you won’t know anything about it until you file your tax return, or if the person is trying to do it again. If the IRS gets two different tax returns with the identical social security number the second one will be rejected.
If your due process was made online or done personally by the other person, you will receive a notice from the IRS explaining why you were rejected (a return was already filed). But if you are suspicious about some funky business going on with your tax refund, you can do something about and file a claim.
Alerting the IRS using the Form 14039
The proper way to proceed if you find out about a parallel tax refund with your social security number is to alert the IRS. You will do this by using the Form 14039. In there, you will specifically explain you have received a notice regarding a second tax refund made on your name.
In addition, you will have to inform you have been a victim of identity theft and how this has affected your tax account. You should be aware you will need to gather all your information from the affected year and the past tax year.
Sending the Form 14039
Once you completed Form 14039, you should send it via mail along with a copy of your Social Security card and your driver’s license. In case you don’t have a driver’s license, you can also use your U.S. Passport, Military ID or some other government-issued identification paper.
You have to submit the notice received regarding the second tax refund or in case you didn't receive a notice you are going to have to send your documents to the following address: Internal Revenue Service / P.O. Box 9039, Andover / MA 01810-0939.
You have to request and identity verification from the IRS
It’s part of the protocol that when the IRS rejects a tax return they usually send a document called “Letter 5071C”, so they can verify your information to see if you actually filed the tax return. The verification methods they offer are via online through their website “https://idverify.irs.gov” or by the phone number you will find in the letter itself.
The IRS doesn’t ask you to call some other number or send any information via e-mail, in case you receive these kinds of requests you can be sure it’s a scam. This is the information you’ll need: name, date of birth, contact information, Social security number (SSN) or individual taxpayer identification number (ITIN), past year tax return with papers such as W-2s, 1099s, and Schedules A and C.
If you suspect your identity has been stolen you need to take action right away because if they have enough information to file a tax return on your name, they can also do all sorts of mischief stuff using your information. You should consider freezing your credit report file to avoid false accounts from being opened and filing an identity theft statement to your police department.